Chile central bank again holds benchmark interest rate
TLT•Chile’s central bank unanimously kept its benchmark interest rate at 4.5%, extending its pause through the year. September inflation was 4.1%, above the bank’s 2% to 4% target range, while the government cut its growth forecast for this year to 0.7%.
1. Rate decision
Chile’s central bank held its benchmark interest rate at 4.5%, in line with analysts’ expectations. The unanimous decision extended the pause that has been in place throughout the year.
2. Inflation and outlook
The bank said the local economy is expected to regain momentum toward 2027, but that weakness could persist longer than anticipated. It said policymakers would watch for signs that recent shocks have a larger or more persistent impact on inflation. September annual inflation was 4.1%, flat from the previous month and above the bank’s 2% to 4% target range. The government now projects growth of 0.7% this year, down from 1.8%, and average annual inflation of 3.8%, up from 3.6%.
